Former KH Philux Executives Arrested One After Another for '63.1 Billion KRW Unfair Gains' by Inflating Stock Price with False Disclosures

Three former executives of KH Philux, accused of obtaining unfair gains worth approximately 63.1 billion KRW by making false disclosures and distributing press releases claiming entry into a new bio business to boost stock prices, have been consecutively arrested.

Seoul Southern District Prosecutors' Office, Yangcheon-gu, Seoul.
Photo by Kim Daehyun kdh@

On the 22nd, the Financial and Securities Crime Joint Investigation Division of the Seoul Southern District Prosecutors' Office (Chief Prosecutor Gong Jun-hyeok) announced that they had requested arrest warrants for Park, former Vice Chairman of KH Philux (55), and Ahn, former CEO (47), who are suspected of fraudulent unfair trading, and that the warrants were issued on the 8th.

Additionally, Ahn, former Vice Chairman of KH Philux (54), who conspired with the two and fled to the Philippines after committing the crime, was arrested on the 20th. After the crime, Ahn fled to the Philippines but was apprehended locally on the 23rd of last month through an Interpol red notice. Following negotiations with Philippine authorities for extradition, he returned to Korea on the 19th, and the prosecution immediately requested an arrest warrant to secure custody.

A representative from the Seoul Southern District Prosecutors' Office stated, "By strictly punishing financial and securities criminals such as fraudulent unfair traders, we aim to protect honest retail investors and ensure that the message 'financial and securities criminals who disrupt market order will inevitably pay the price' is clearly conveyed to the stock market. We will do our utmost to achieve this."

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